Why are gold mining stocks underperforming the metal? Over the last 5 years, gold has turned every 1% gain in gold mining stocks into a 2% rise. Could this "abnormality" be critical to the underlying bull market in bullion?
Gold bullion prices held steady around $1,517 per ounce for most of Wednesday morning in London - a 2% jump from last Friday's close - while stocks and commodities fell after Portugal saw its sovereign debt downgraded to junk.
Gold and silver have surged to new record highs in dollar terms (all time and 31-year) with the dollar falling sharply on international markets. Silver continued to surge in all currencies and has surged to a new record nominal high of $46.25/oz.